Time to Refinance? Ask Yourself These Questions

With mortgage interest rates beginning to drop after what was a volatile year in 2018, many homeowners believe that now is not the time to refinance their current home loan.

But the truth is, securing a lower rate is only one of many reasons why homeowners refinance.

Ask yourself the following:

1. Do I want to keep paying Mortgage Insurance?

If you currently have an FHA loan, you may want to consider refinancing into a Conventional option, which no longer requires Mortgage Insurance once you’ve paid your loan down to 80%.

2. Do I currently have an Adjustable Rate Mortgage (ARM)?

True to its name, an ARM is a home loan with an interest rate that can change periodically, causing monthly payments to go up or down. Refinancing into a fixed rate loan may help you lock in a lower payment for the future.

3. Do I want to repair or renovate?

If so, a Cash-Out Refinance may be a good option this fall. By borrowing against your current home equity, you can get cash to pay for home remodeling.

Call or email Midwest Lending today, to see if a refinance is part of your 2019 financial picture!